Apple focuses on services. Why?

The nearest Apple, according to insiders, will be almost completely dedicated to software and services. Analysts of investment company Cewon believe that the emphasis on services is not accidental, but strategically the move. According to experts, Apple understands that the iPhone is not as interesting to users and that is why the company intends to develop themselves in important areas such as services. It is possible that in this way Apple will be able to return former interest to their smartphones.

It is no secret that the services of the company, as the app store, App Store , or streaming music platform Apple Music brings the company a large part of the income. But all this pales in comparison with the profits derived from the sales of the main product of the Corporation is iPhone. Cewon analysts believe that the development of the services will in future move away from direct dependence on sales of the devices. And the Corporation has already begun to move in this direction, very soon Apple will introduce its streaming video service and updated news service with paid subscriptions to popular publications.

However, even without the introduction of new services, Apple definitely has room to grow. It offers a cloud service iCloud, its own payment system Apple Pay (Commission on each transaction 0.15%), there is even an extended warranty AppleCare Protection Plan — for the main devices of the company. Rethinking some of these services, the Corporation can achieve even more impressive results — if recycled products will be really uncompromising and easy to use. And in a sense this could help iPhone sales, thanks to tight integration into the Apple ecosystem.

Recall that for the first quarter of 2019 Apple’s revenue from such services amounted to 10.9 billion dollars (8.8 billion a year earlier). If the experts are correct, this figure will double by 2021.

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